Exam (elaborations)
AINS 103: CHAPTER 4 QUESTIONS AND ANSWERS WITH SOLUTIONS 2024
- Course
- Institution
AINS 103: CHAPTER 4 QUESTIONS AND ANSWERS WITH SOLUTIONS 2024
[Show more]
Content preview
AINS 103: CHAPTER 4 QUESTIONS ANDANSWERS WITH SOLUTIONS 2024
What format do most insurers use for commercial auto coverage? - ANSWER Due to auto insurance
needs and legal requirements, coverage needs can vary, which is why most insurers use a flexible,
modular format.
Business Auto Coverage Form (BACF): - ANSWER Provides auto liability insurance and includes optional
coverage for physical damage to autos.
BACF Liability Coverage: - ANSWER The insurer agrees to pay damages for bodily injury or property
damage the insured is liable for that is caused by an accident involving a covered auto. Exclusions, policy
limits and other conditions may apply.
BACF Physical Damage Coverage: - ANSWER Coverage is optional, but is often required if a business is
financing or leasing its autos.
The BACF allows a business to select from three basic physical damage coverages: - ANSWER -Collision
-Comprehensive
-Specified Causes of Loss
Collision Coverage: - ANSWER Insures direct and accidental loss of or damage to a covered auto caused
by its collision with another object or is overturned.
Comprehensive Coverage: - ANSWER Open perils coverage, which insures direct and accidental loss of or
damage to a covered auto by any peril EXCEPT collision, overturn, or one specifically excluded. Overlaps
with Specified Causes of Loss Coverage.
Specified Causes of Loss Coverage: - ANSWER Covers direct and accidental loss caused by fire, lightning,
explosion, theft, windstorm, hail, earthquake, flood, mischief, vandalism, or loss resulting from the
sinking, burning, collision, or derailment of a conveyance transporting the covered auto. Overlaps with
Comprehensive Coverage.
, Important Endorsements: - ANSWER Coverages for medical payments, personal injury protection (PIP),
uninsured motorists (UM), and underinsured motorists (UIM) are commonly added by endorsements to
commercial auto coverage forms.
Auto Medical Payments Coverage: - ANSWER Pays small bodily injury claims resulting from an auto
accident, regardless of fault.
(Personal Injury Protection (PIP) Coverage: - ANSWER May be legally required by state law. It pays
benefits, regardless of fault, for medical expense, income loss, and other expenses resulting from an
accident.
Uninsured/Underinsured Motorist (UM/UIM) Coverage: - ANSWER Pays for injuries caused by another
motorist who is uninsured/underinsured and unable to pay as a result.
Jane is an Electrician who drives her employer covered auto, a van, to a customer's house. While parked,
the van leaked coolant on the customers driveway. Does the BACF provide coverage for the pollution
cleanup? - ANSWER Yes.
What three basic physical damage coverages does the BACF offer to businesses? - ANSWER -Collision
-Comprehensive
-Specified Causes of Loss
Which example would qualify as an uninsured motorist pursuant to an uninsured motorist UM
endorsement on a business auto policy? - ANSWER A hit-and-run driver.
The Morlyn Corporation has a Business Auto Coverage Form (BACF) that provides liability coverage for
any auto. In addition to the named insured, who/what would also be an insured under Morlyn's BACF
when driving a covered auto? - ANSWER An employee driving a vehicle leased by Morlyn for business
purposes.
Coverage will apply under the liability insuring agreement of the Business Auto Coverage Form (BACF)
for bodily injury or property damage due to: - ANSWER Caused by an accident.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Performance. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77016 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now